Why Japan - JETRO
Transcript of Why Japan - JETRO
Why Japan ?
Masashi Nakazono JETRO Genève
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Prepared for Handelskammer beider Basel & JETRO seminar on 4 Nov 2016
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Who are we ?
Japan External Trade Organization (JETRO)
• Governmental organization to promote mutual trade and investment between Japan and the rest of the world
• Established in 1958
• Overseas offices: 74 (in 55 countries)*
• Japan offices: Tokyo Headquarters, JETRO Osaka,
46 regional offices, the Institute of Developing
Economies (IDE-JETRO) *
• Employees: 1,735 (998 in Japan and 737 overseas)**
*As of April 2016
**As of January 2016
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JETRO’s Overseas and Domestic Network
74 overseas offices
46 domestic offices
Copyright (C) 2016 JETRO. All rights reserved.
Who are we ?
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1. Trade & Investment between Japan and Switzerland
2. Why Japan ?
3. Making Japan the most business-friendly country in the
world
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Sources Prepared by JETRO “Japan's Outward and Inward Foreign Direct Investment” From The Ministry of Finance “Balance of Payment Statistics” and Bank of Japan foreign exchange rates.
1. Trade & Investment between Japan and Switzerland
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9.3 billion USD (2015 stock)
6.4 billion USD (2015 stock)
Investment between Japan and Switzerland
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3.0 billion USD(2015)
From Federal Custom Administration (FCA).
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6.4 billion CHF(2015)
1. Trade & Investment between Japan and Switzerland
Trade between Japan and Switzerland
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Inward FDI stock in Japan
Inward FDI into Japan by region
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Europe
47% North
America 29%
Asia 16%
Central and
South America
6%
Oceania 2%
Data Source: Ministry of Finance Japan “International Investment Position of Japan (historical data)”
0
5
10
15
20
25
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(Trillion yen)
23.3
6.1
19.4
Approximately
$230 billion
1. Trade&Investment between Japan and Switerland
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Japanese Government commits inward FDI to expand to 350 B USD by 2020 from 230 B USD in 2014
Inward FDI into Japan
Japan:BOJ: Balance of Payments (Data Based on the BPM6), Cabinet Office SNA (National Accounts of Japan) Other Countries :UNCTAD “World Investment Report 2015”, FDI database
Foreign Direct Investment Portion by GDP (%)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Japan China Korea Germany France USA UK
4.8%
10.5% 12.8%
19.3%
25.6%
31.1%
56.5%
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1. Trade & Investment between Japan and Switzerland
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1. Trade & Investment between Japan and Switzerland
2. Why Japan ?
3. Making Japan the most business-friendly country in
the world
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2. Why Japan?
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2. Why Japan?
1.9% Increase
GDP (Real GDP seasonally adjusted)
Improved
Business confidence (Tankan Index of Bank of Japan,
manufactures)
Greatly Improved
Improving Economic Indexes Under Abenomics
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519 Trillion yen
530.8 Trillion yen
Large firms -3 Medium-sized firms -5 SMEs -12
Large firms 6 Medium-sized firms 3 SMEs -3
Before launch of Abe administration
Now
Stock Price (Nikkei Stock Average)
Increase 10230.36 yen 17446.41 yen
12
(28 Oct, 2016 Closing price)
(Sep 2016)
(Apr-June 2016)
(2012 Average)
(2012)
(Dec 2012)
(Sep 2016)
(26 Dec 2012) Launch of Abe administration
3.0% 4.3% Unemployment rate
2. Why Japan?
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Target of Foreign Visitor Arrivals in 2020
0
5'000'000
10'000'000
15'000'000
20'000'000
25'000'000
30'000'000
35'000'000
40'000'00040M arrivals in 2020
20M arrivals in 2015
2. Why Japan?
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The number of foreign visitors to Japan in 2015: 20 million Their Consumption in 2015: 3.4 trillion JPY (34 B USD)
Source:Japan National Tourism Organization, Press release, Jan. 19, 2016 Japan Tourism Agency, Consumption Trend Survey for Foreigners Visiting Japan, Press release, Jan. 19, 2016
(billion yen)
6'219
8'358
10'364
13'413
19'737
814
1'085
1'417
2'028
3'477
0
500
1'000
1'500
2'000
2'500
3'000
3'500
4'000
0
5'000
10'000
15'000
20'000
25'000
2011 2012 2013 2014 2015
Foreign Visitor Arrivals
Consuimption amount (B. yen)
■ Foreign Visitor Arrivals and their Consumption Amount
2. Why Japan?
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2. Why Japan?
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1'453
1'786
1'860
2'066
2'144
2'346
2'829
2'941
3'852
4'601
10'360
17'419
0 5'000 10'000 15'000 20'000
Australia
Canada
Russia
India
Italy
Brazil
France
UK
Germany
Japan
China
United States
Gross domestic product 2013 (US dollars, Billions) World Development Indicators database, World Bank, 18 Sep. 2015
Japan’s GDP is Over 500 trillion yen. A leading world economy that boasts large-scale economic power.
(source: Statistics Bureau, Ministry of internal Affaires and Communications “World Statistics 2014”, Cabinet Office)
World Ranking of GDP
2. Why Japan?
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Kyushu region 602.5 Belgium 534.6 488
International comparison of regional GDP in Japan (nominal, FY2013)
2. Why Japan?
(Unit $1 billion)
Nagoya region
Tokyo region Osaka region
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“The reason why P&G tests its new disposable diapers in Japan is because Japanese housewives are the strictest
consumers.”-----------------Prof. Michael E. Porter
Sophisticated Market
2. Why Japan?
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2. Why Japan?
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2. Why Japan?
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Source: Created from Ministry of Internal Affairs and Communication, “Survey Result on Science and Technology Indicators 2014 ” Date source: OECD “Main Science and Technology Indicators, ” etc.
Rank Country Percentage of GDP (%)
1 Japan 3.75
2 German 2.98
3 U.S. 2.79
Rank Country Number of
researchers per 10,000 people
1 Japan 52.0
2 Canada 45.6
3 German 42.5
Research funding percentage of GDP (G7 comparison)
Number of researchers per 10,000 people (G7 comparison)
Science and technology related research is conducted spiritedly in Japan. “Research funding as a percentage of GDP” and “Number of researchers per 10,000 people” are among the largest in the world.
Innovation Hub
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4th - France (2.29%), 5th - UK (1.73%), 6th - Canada(1.69%), 7th - Italy (1.27%), 8th - Russia (1.12%)
4th - US (40.2), 5th - UK (39.7), 6th - France(38.3), 7th - Russia (31.0), 8th - Italy (12.7)
2. Why Japan?
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2. Why Japan?
25 4
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Yoshinori OHSUMI: 2016 in Physiology or Medicne on the discoveries of mechanisms for autophagy
Satoshi OMURA: 2015 in Physiology or Medicne on the therapy against infections caused by roundworm parasites
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2. Why Japan?
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Business-Friendly Infrastructure
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Source: World Economic Forum, “The Global Competitiveness Report 2016-2017”
Source: Ministry of Economy, Trade, and Industry(METI), “Survey on Attitudes of Foreign Companies toward Direct Investment in Japan Report 2014”
Easy environment for business
Foreign companies validate Japan’s infrastructure
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2. Why Japan?
2 nd
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2. Why Japan?
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2. Why Japan?
Japan’s Business Cost
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(USD)
(USD)
Source : JETRO
Source : JETRO
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Tokyo Brussels
Mumbai
Seoul
Paris
Singapore
London
Hong Kong
0 20 40 60 80 100 120 140 160 180
Tokyo Brussels
Seoul
Paris
Hong Kong
Mumbai
London
Singapore
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Office rent (monthly/per sq.m)
Housing rent for expatriates (monthly)
2. Why Japan?
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Nearly 100 airports operate nationwide
Excellent Japanese transport infrastructure spreading throughout Japan
2. Why Japan?
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2. Why Japan?
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2. Why Japan?
6th in the world.
RANK
Source: MONOCLE, UK
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1. Tokyo 2. Vienna 3. Berlin 4. Melbourne 5. Sydney 6. Stockholm 7. Vancouver 8. Helsinki
:
12.Fukuoka 14.Kyoto
Comfortable Living
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Most livable Japanese cities as chosen by the world
2. Why Japan?
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2. Why Japan?
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1. Trade & Investment between Japan and Switzerland
2. Why Japan ?
3. Making Japan the most business-friendly country in
the world
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Challenges in doing business in Japan
Rank 2013 Survey 2015 Survey
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High business costs Complicated business systems and structures
2
Particularities of Japanese market
Difficulty in finding human resources
3
Difficulty in communicating in non-Japanese languages
Difficulty in communicating in non-Japanese languages (in business)
4
Complicated business systems and structures
Particularities of Japanese market
5
Difficulty in finding human resources
High business costs
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3. Making Japan the most business-friendly country in the world
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Structural Reform
Opening up the electricity market
Regulatory reforms of Medicine and medical equipment
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3. Making Japan the most business-friendly country in the world
Corporate Tax Reform
Down to the
20% range from this April
Reduction of the corporate tax rate
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2. Why Japan?
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